Why Consider a Second-Hand Car for Uber?

Like most partners who joined Uber last 2015, we also bought a brand new car for Uber (ALL-IN, low down) . But as the incentives went away it’s becoming difficult to pay our (very high monthly) amortization. Comment below if you share our dilemma. 🙁

Partner Tips: The ALL-IN low down payment schemes offered by car dealerships usually comes with a high monthly amortization. In-house financing is generally more expensive than a direct auto loan from a bank. Longer amortization periods, for example 5 years is more expensive in the long run than a car amortized for only 3 years. (Of course, car dealers and banks need to make money!)

We’ve learned about a partner, Kuya Ronald, who is building his Uber business in a sustainable way. He pays significantly less than our amortization. The secret is —-how he acquired his Uber vehicle.

Kuya Ronald, didn’t buy a brand new car for Uber. Instead, he bought a 2 year old second hand car for Uber.

Lower and Cheaper Amortization

Since a second hand car has a lower market value, monthly amortization is lower. This allows him to operate his Uber business with better cashflow. Imagine, we’re paying Php 17,500 per month for our brand new car while a second hand car can be amortized for only about Php 8,000!!

But Kuya Ronald suggests that if you have the capital, it also a good idea to pay the second hand car in CASH than amortize it per month. If you pay in full, you save on bank interest and eliminates monthly car amortization altogether. But if capital is limited, remember that there are also banks that offer financing for second hand cars.

TIP: Lower amortization means he keeps more money from his Uber operation, better cashflow, and ensures a more sustainable Uber business.

Tips in Buying a Second hand Car:

Buy a second hand car in GOOD CONDITION

Kuya Ronald argued that even if you buy a brand new car, its value depreciates by 30% the moment you drive it out of the dealership. So for him, he controls his risks by buying a well maintained second hand car.

Buy from a trusted second-hand car dealer/seller

Only buy from trusted sellers. It’s not worth the savings if the car is a stolen vehicle or the car has a lot of defects. Don’t be a victim of a scam!

Confirm the claims of the seller

You cannot just take the word of the seller that the vehicle is in good condition. You have to confirm for yourself that all the things he/she claims the vehicle to be, is true. You don’t want the air conditioning not working one day after purchasing.

Kuya Ronald shares with us that he bought his second-hand car for Uber with the help of Carmudi [www.carmudi.ph], the biggest buy and sell platform for brand new and second hand cars in the Philippines.

We hope this article will help you, aspiring Uber Partners, make a sound decision in joining Uber. And just like Kuya Ronald, have a happy and sustainable Uber business. If you want more info on how to be an Uber Partner, just refer to this step-by-step guide.

There seems to be a problem with mu Uber account.
1.) I encoded my credit card number to get done with registration. But since there is already an option for “Cash” payment, I wanted to pay cash instead of credit card but I cannot CHANGE the payment mode.
2.) The credit card number encoded in my account is now expired. So the last time I booked my credit card provider notified me a “declined” transaction of P103. So I paid in cash. How come on my succeeding bookings, I was being notified that I owe Uber P103?
3.) I want to access mu Uber account to change registration details but can’t access. So I requested to “change passowrd”. Uber notifies me that they sent the “change password” link to my email but I am not receiving any email.

Hi! The owner of the car works overseas. How can he register? Can he register even he is not here? I will be the driver. Can he also be a second driver when he comes home for few months holiday, for example. Pls email me. Thanks in advance. We want to register.

If you want to get all the details about being an Uber Partner, we highly recommend you watch the replay of the FREE webinar we did a couple weeks back. We guarantee all your questions will be answered plus pioneer and seasoned Uber Partners will give some practical tips at the Q&A portion at the end. You can access the replay here: https://app.webinarjam.net/replay/1010/be1796dcdb/0/0

DISCLAIMER

UBER MNL Tips is your guide to the basics you need to know about UBER Manila. We'll give you tips and tricks so you get the best Uber experience. This blog is made by fellow riders and avid fans of the disruptive innovation that is Uber. We want to spread awareness and share its awesomeness with other riders.
This blog is not affiliated in any way with Uber. No misrepresentation intended.